During the republican era, the U.S. recognized the Beiyang Government in Beijing from 1912 to 1928 and the Nationalist Government in Nanjing (and Chongqing from 1937 to 1945) from 1928 onwards. After the CommunistPeople's Republic of China was established in mainland China in 1949 and the Kuomintang moved the Republic of China government from Nanjing to Taipei, Taiwan, the U.S. continued to recognize the Republic of China as the legitimate Chinese government and maintained its embassy in Taiwan. However, in 1973, the U.S. established a Liaison Office in Beijing to represent its interests in mainland China. In 1976, the Chief of the Liaison Office was promoted to the rank of ambassador. In December 1978, the U.S. severed official relations with the Republic of China and in January 1979, established formal relations with the People's Republic of China. The U.S. Liaison Office in Beijing was upgraded to an embassy on March 1, 1979. The American Institute in Taiwan was established in 1979 to serve as the unofficial U.S. representative to Taiwan, with the director of its Taipei Office taking the role of a de facto ambassador.

The Communists took the Nationalist capital of Nanjing in April 1949, but Stuart was not recalled from China until August 1949. The United States did not recognize the new government of the People's Republic of China upon its founding in October 1949. The Consulate in Taipei was upgraded to an embassy in 1953, and therefore the Ambassador to China maintained residence at Taipei, Taiwan, in the Republic of China until relations were severed in 1979. (See: Former American Consulate in Taipei)

The United States established diplomatic relations with the People's Republic of China, and terminated them with the Republic of China, on January 1, 1979. The American Embassy at Taipei closed February 28, 1979, while the American Liaison Office at Beijing was redesignated the American Embassy on March 1, 1979.